#Check my business credit score for free#
Nearly every small business financing lender uses a different formulaĪccess: You can see your personal credit score for free from multiple sources, but there are a limited number of sources available for viewing your business credit score. Business lenders, on the other hand, tend to develop their own standards or use rating agencies like Dun & Bradstreet to make their lending decisions. Standardization: FICO or VantageScore are used by the majority of consumer credit bureaus. Range: Personal credit scores range from 300 to 850. Rating Agencies: Consumer lenders use TransUnion, Equifax, and Experian while business financing companies rely on Dun & Bradstreet, Experian, Equifax, and even their own proprietary formulas How is a Business Credit Score Different from Personal Credit Score?Ī business credit score differs from a personal FICO or credit score in the following ways: The Small Business Administration (SBA), banks, suppliers and other business lenders rely heavily on business credit scores and FICO scores when providing lines of credit or extended payment terms. For personal credit scores, the ratings range from 300 to 850, with most lenders requiring a minimum score of at least 600 for a personal loan.īusiness credit scores range from zero to 100 and most small business lending companies require a minimum business credit score of 75. There are a few key differences between these and business credit scores. Most people are familiar with the concept of personal credit scores. This is similar to, but not the same as, a personal credit score or personal FICO score. Now that we see how important business credit scores are, let’s define them: A business credit score is a number, representing the likelihood your business will be approved for funding. Internal record keeping and monitoring small business credit scores can be time consuming You can influence and improve your credit scores with effort, but you cannot directly change them since they are given to you by external rating agencies It often takes at least a year or two to establish or improve your business credit history or personal credit history In the absence of a business credit score, you need a very strong personal credit history to qualify for a small business loan based on your personal credit aloneĭealing with credit scores can be challenging because: Suppliers often look at your business credit score before offering terms, and having good credit makes it easier to negotiate favorable terms with themīanks rely heavily on business credit scores and FICO scores for establishing lines of credit Establishing good credit scores is important because: There are a lot of reasons that make it complicated.and very important. Even highly educated business owners find business credit difficult to understand.
#Check my business credit score how to#
Index to this Guide:īefore we dive into the details about business credit scores, how they are used, and how to keep track of them, it’s important to understand why they are so important, and why this is such a difficult topic for so many. We’ll also discuss how conventional small business financing companies use your credit score information. After all, it’s important to establish good credit before you apply for funding. We’ll also discuss why they are important to every business, whether you are currently looking for additional capital or not. In this guide, we’ll address all of these common questions. Understanding how small business funding works, how business credit scores are calculated, how business credit scores differ from personal credit scores, and the importance of establishing good credit, will all help you achieve success as you expand your business.
It will be incredibly helpful to you to understand the bigger picture when it comes to business credit. Even if you were able to start your business with your own savings, the time will come when you may need to access additional funds. If you are a small business owner, you’ve probably considered ways to get funding to grow your business.
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